Construction Industry News
Jindal Steel and Power Limited (JSPL) hopes to sell a 96.42% stake in Jindal Power Ltd (JPL) for Rs 7,401 crore to Worldone by December 2021.
More than 97% of the company's shareholders have approved the proposal to sell 96.42% of the shares of Jindal Power to Worldone on Friday for Rs 7,401 crore.
According to official sources, shareholders have confidence in JSPL's Environmental, Social and Governance (ESG) Vision. Nearly 90% of the company's shareholders have approved and voted on the sale of Jindal Power to Worldone. The divestment process will be completed by the end of this year.
Under the deal, Worldone is expected to purchase the total shares of JPL and redeemable preference shares of JSPL for approximately Rs 7,401 crore.
Of the total cost, Rs 3,015 crore will be paid in cash, and the remaining Rs 4,386 crore will be the assumption of liabilities and obligations of JSPL with intercorporate deposits and capital advances paid by JPL to JSPL.
The divestment has a debt related to JPL of approximately Rs 6,566,440 crore, which will be removed from JSPL's consolidated books, strengthening JSPL's balance sheet.
Previously, JSPL, through Grant Thornton Advisory Pvt Ltd, an independent transaction advisor, had made an additional competitive tender offer for the sale of its entire stake in JPL in order to maximize shareholder value.
Inviting the Expression of Interest (EOI) from domestic and international bidders was published in newspapers, but did not receive an EOI, so Worldone's revised offer was selected as the winning bidder for JSPL.
The divestiture of JPL is a strategic objective of JSPL to focus on its Indian steel business, become a net debt free company and reduce its carbon footprint by almost half of the ESG targets.
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